Government borrowing came in far higher than expected in December as a result of debt interest and a one-off purchase of military homes, data from the Office for National Statistics shows.
Public sector net borrowing of £17.8billion for the month exceeded market forecasts of £14.1billion and will put further pressure on Chancellor Rachel Reeves’ commitment to her fiscal rules.
The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are EasyJet, JD Wetherspoon, EnQuest and Herald Investment Trust. Read the Wednesday 22 January Business Live blog below.
> If you are using our app or a third-party site click here to read Business Live
EasyJet on track for £10bn in sales
John Moore, senior investment manager at RBC Brewin Dolphin:
‘EasyJet’s results confirm good growth in sales and an improving picture in terms of profitability – even during the traditionally slower winter period.
‘This is a result of a number of measures coming together for the airline, such as route efficiency, lower fuel costs, and good load factors.
‘Unlike Ryanair, easyJet has a balanced fleet by manufacturer, so the Boeing dispute shouldn’t impact it unduly. That issue, and concerns about post-Budget consumer sentiment, appear to be the only clouds on the horizon – although, forward bookings are robust and the holidays business continues to deliver strong growth.
‘EasyJet should make £10 billion of sales this year and is en route towards £1billion in profits, which are significant milestones for the airline to reach in future updates.”
Netflix signs up a record 19m as crackdown on password sharing and raft of hit shows boosts business
‘Chancellor finds herself with even less fiscal headroom’
Joe Nellis economic adviser at accountancy and advisory firm MHA:
‘With public sector borrowing in December coming in higher than expected at £17.81bn, the Chancellor finds herself with even less fiscal headroom than previously thought.
‘Increased borrowing, combined with the recent rising cost of borrowing, has put more intense strain on central government expenditure.
‘While the bond market has calmed in the last week and fears of an emergency mini-budget have subsided, the Chancellor will be very aware of the dissipation of government finances as we head towards the OBR’s Economic and Fiscal Forecast scheduled for 26 March.’
EasyJet losses narrow
EasyJet saw operating losses narrow in its first fiscal quarter, as the airline was boosted by easing fuel costs, and strong demand for travel and its holiday packages.
Operating losses came in at £40 million for the three months to the end of 2024, compared with £117million a year earlier.
‘Looking to this summer, we have seen continuing demand for easyJet’s flights and holidays where we have one million more customers already booked, with firm favourites like Palma, Faro and Alicante,’ the carrier’s new CEO Kenton Jarvis said in a statement.
Showdown in the City: Legendary stock picker goes head-to-head with Wall St raider in battle over future of London’s investment trusts
Government borrowing hits £17.8bn in December
Government borrowing came in far higher than expected in December as a result of debt interest and a one-off purchase of military homes, data from the Office for National Statistics shows.
Public sector net borrowing of £17.8billion for the month exceeded market forecasts of £14.1billion and will put further pressure on Chancellor Rachel Reeves’ commitment to her fiscal rules.
